How can you reduce the risks and costs of construction dispute resolution?

1 Plan ahead

One of the best ways to prevent disputes is to plan ahead and anticipate the potential sources of conflict. This involves defining the scope, objectives, roles, and responsibilities of each party clearly and accurately in the contract documents. It also means conducting a thorough risk assessment and allocating the risks fairly and transparently among the parties. Additionally, you should establish effective communication and collaboration channels, as well as clear and consistent procedures for change orders, payments, claims, and disputes.

3 Use alternative dispute resolution methods

If you cannot resolve a dispute through direct negotiation, you may consider using alternative dispute resolution (ADR) methods, such as mediation, conciliation, or adjudication. These methods are usually faster, cheaper, and more flexible than going to court or arbitration. They also allow the parties to maintain more control over the outcome and preserve their confidentiality and relationship. However, you should be aware of the advantages and disadvantages of each method, and choose the one that suits your situation and goals.

4 Seek professional advice

Sometimes, you may need professional advice or assistance to deal with a dispute effectively. This could be from a lawyer, an expert witness, a dispute resolution board, or a dispute resolution adviser. These professionals can help you understand your rights and obligations, evaluate your options and risks, and represent your interests in a dispute resolution process. However, you should also weigh the costs and benefits of hiring a professional, and ensure that they are qualified and experienced in construction disputes.

5 Learn from experience

Finally, you should learn from your experience and use it to improve your future practice and performance. This means reviewing the causes and outcomes of the disputes you faced, and identifying the lessons learned and best practices. You should also implement the necessary changes and improvements in your contract management, project management, and dispute resolution skills. By learning from experience, you can reduce the likelihood and impact of future disputes, and enhance your reputation and competitiveness in the construction industry.